It is the age-old question isn’t it? What effect does filing Chapter 7 Bankruptcy have on my credit? It’s not what you think and here is why. Suppose you say to me, I have 50k in credit card debt and I have fallen behind on my payments. The credit card companies have not sued me yet but I am in default on all my payments and I am starting to hear from collection agencies. We all know collection agencies are the last stop before you get sued and your wages garnished and accounts levied by creditors.
How do you suppose your credit is now? Would a lender lend you money if you have 50k in credit card debt and you are delinquent on all of the cards? No way right? Besides, how you think your credit looks when you are in default on the payments? Not good right? Now suppose you reached out to a lender after you filed your Chapter 7 Bankruptcy and the debt has been discharged. Would a lender lend you money now? Quite possibly yes! The reason for this is your liability on the debt is gone. You now are debt free and you cannot file Chapter 7 Bankruptcy again for 8 years.
The point I am making is your credit profile is much better after you file Chapter 7 Bankruptcy. Why? Because you go from a position of $50k in credit card debt to $0 debt. Makes sense right? People in Minneapolis, MN mistakenly think lenders care about whether you pay other creditors. Lenders don’t give a rat’s butt whether you pay other creditors. What future lenders want to know is will you pay me?
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
When the time is right, or when you are ready to get your life back, reach out to Minneapolis, Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com. You will be so thankful you did.
